Microsoft to reduce workforce by 1,900 employees in gaming division, including newly acquired Activision, maker of Call of Duty.

Microsoft announced on Thursday that it will be letting go of 1,900 employees at Activision Blizzard and Xbox, representing about 8 percent of the overall Microsoft Gaming division. The majority of the cuts will take place at Activision Blizzard.

In addition to the job cuts, Blizzard President Mike Ybarra and Chief Design Officer Allen Adham will be leaving the company. A survival game that was previously announced by Blizzard has also been canceled as part of the restructuring.

The news comes following Microsoft’s $69 billion deal for Activision Blizzard, which aimed to bolster its presence in the video gaming market with popular titles like Call of Duty. The move was seen as a way for Microsoft to better compete with industry leader Sony.

Following the announcement, the Communications Workers of America (CWA) expressed support for the affected workers and emphasized the importance of having a union voice in the industry. The CWA stated, “Microsoft’s announcement that it will be laying off 1,900 video game workers makes clear that, even when you work at a successful company in an extremely profitable industry, your livelihood is not protected without a voice on the job.”

The tech sector has seen a wave of layoffs in recent weeks, with several major firms including Alphabet, Amazon.com, and eBay cutting thousands of staff to reduce costs. According to tracking website Layoffs.fyi, more than 21,000 workers have been laid off in 76 tech companies in January alone.

Despite the high number of layoffs, analysts and industry experts expect fewer job cuts this year, with a focus on AI technology leading to potential downsizing in other areas. In 2023, the tech sector shed 168,032 jobs, accounting for the highest number of layoffs across industries.

The Verge first reported the news of the latest job cuts by Microsoft, as the tech industry continues to navigate through ongoing challenges.